After the first dozen I built I had a pretty good handle on costs.

I can see myself skipping the bidding process if my (future) architect highly recommended a builder who is consistently faithful in executing the architect's designs. I like historic and vernacular styles, so getting them right is important to me, even if I don't currently know what all of the "rules" are for the given architectural style/pattern/flow.

Otherwise, I'd collect a few bids, just so that I could avoid using anyone who low-balled the project. Seems much more risky to pick the lowest bidder.

I haven't priced a whole house recently, but when we built our guest house 6 years ago, there was quite a spread in costs, close to $100K. We went with the lowest bid, because we knew he did great work, but ended up closer to the highest bid when all was done. We added several things so it probably would have increased the higher bids by that much too.

Three years ago we did a complete gut of our large master bath with some plumbing changes and lots of intricate tile work. The labor on that was around $40K and I was amazed that the 3 bids were within a few hundred dollars ... it made me think that maybe they all met at Starbucks and agreed on a price! ;-)

I am doing a full kitchen gut and remodel and there was a $10k spread. I went with the higher bid because he really researched the building plans and figured out most of the problems ahead of time. And this guy does amazing detailed work. The other 3 bidders didn't crawl under the house, so I figured they would have extra charges or not do the work properly.

No two people will look at the project exactly the same, make sure you have a complete list of your materials so the GC's can bid 100% apples to apples or the bids will be almost useless. But always get three prices.

What is the scope of your project?

What sort of construction contract are you seeking: 1) Fixed cost; 2) Time and materials; 3) Cost plus...? Do you know and understand the differences?

Do you have allowances included in your construction documents?

Are there any notable special conditions for your project?

How detailed is the bid? The one with the greatest amount of detail will be very close. When I say detail, I mean down to the type of nails and screws. You want detail. This means you will need to know what you want, too.

With construction costing software, even custom homes should be in the ball park. Of course, there are a few areas where you have to help them. They don't know your taste. Appliances, lighting fixtures, floor material choices, trim packages and HVAC choices are variable according to the owner's choice. But, you should go through you plans and know what kind of appliances you want and how much they generally cost.

One area that is very difficult to cost is the foundation. Mostly, because you don't know what you may encounter when they start to dig. Builders will pad this area in order to save trouble later.

Detail is your friend. Go with the builder with the greatest detailed bid.

Yes, you should interview at least 3. We interviewed 5 and immediately narrowed it down to 2.

A lot depends upon how detailed the construction documents are.

If the going rate is 225 per square foot why would there be a difference in price between contractors assuming you're using all the same components?

Are you saying that the "bid" you received was based on a general per square foot cost and no detail to the bid? Walk away from that contractor.

I would worry if all the bids were the same.

This may be one of those threads where the OP posts only very minimal and insufficient information, leaving everyone to guess at the actual situation, and try to offer useful comments, which vary all over the map based on individual guesses about the situation. Then the OP is never heard from again...

Well, in that case, go with the builder with the cleanest jobsite.

go with the builder with the cleanest jobsite

A joke that is not a joke!

It's the first thing I notice and mentally record when driving by any building site. Only in Hollywood productions is mess and disorder the rule for a building site. "Sooo blue collar, what else would you expect dude?"

I am the OP - @virgilcarterfineart. We just got our bid drawings and got our first price from a builder and I am just questioning why the price would vary from builder to builder is all components are the same?

For statistical reasons, get 2; if close you can have reasonably high confidence where you stand. If not close, get a 3rd.

The reason that bids are different is that the bidders are...wait for it...human!

Every bidders takes their own unique and personal approach to competitive bids. Some bidders take a lot of time and care; some bidders do not. Some bidders use subs to gather prices. Some bidders use the SWAG method to pull prices together.

Again, I ask:

--What is the scope of your project?

--What type of construction contract are the bidder(s) proposing?

--Do you have allowances?

--Do you have any special conditions or instructions for your project?

All of these make significant differences in bidding approaches. Good luck!

You're asking if research pays off. You're asking if you should do your homework. You already know the answer to that question!

It's always amazing to me how many consumers don't understand that there are very different categories of construction contracts. Each category is very different in terms of how risk and financial responsibility is allocated between the contractor and the owner.

Builder's bid forms and contract proposals are always...always...written in favor of the...wait for it...the builder! Surprise, surprise!

This is one of the many reasons why many of us here on this forum recommend architects be involved in projects, so that bid forms and contracts for construction are written in an owner's interest. The recommendations are too seldom understood and followed.

This thread is an example of a consumer looking for a potential financial disaster.

"...Crisis averted!..."

Well, Alison, I hope you are right. But it isn't at all clear that the OP understands the differences in construction contracts, allowances, special requirements and all of the important issues which make comparing competitive bids possible.

Simply getting several competitive bids isn't a help at all if one cannot interpret them and the differences involved.

Apples, oranges and pears...

Even more important, is writing bidding instructions and forms so that they are in the owner's interest...

That's the point.

"...What homeowners need are kind people to help walk them through the process and tell them what to be aware of and why..."

Yes, and that's the point of the comments in this thread...

One reason builders vary on bids - they have different expectations for profit. They also have varying degrees of how busy they are. So a busy builder might shoot high and work harder or even hire an extra hand to take your job that pays pretty well.

You should know that there isn't a "going rate" per square footage that means much. It may mean that is what appraisals will generally come in at but the details vary significantly in most situations. I have built for $100 a sqft and $200 a sqft in similar labor cost areas. One had vinyl siding, one has brick and hardie. One has Whirlpool, One has Subzero.

Its all in the specifications... often the "low bid" per foot has the highest margin due to specifications. I've had many calls from people about the their low bidders "missing" critical items. Especially if everyone is building for the same price... specs make the difference. I would rather spend the time gathering information and including all the wants in the price than generating change orders later.